Methanol Holdings (Trinidad) Limited (MHTL), a member of the Proman Group of Companies, yesterday announced the completion of a TT $1 billion term facility. The term facility bears interest at a rate of 5.50 per cent per annum for the first 18 months, a statement from the company said.
It added that the term facility has a tenure of three years and is unsecured with interest payable semi-annually.
The lead arrangers for this TT$1 billion term facility are ANSA Merchant Bank Ltd, Scotiabank Trinidad and Tobago Ltd and Republic Bank Ltd.
The company said the inaugural TT$1 billion debt issuance was oversubscribed and based on strong local reverse inquiries from a combination of local banks, global banks represented domestic and local asset managers.
The proceeds of the financing will serve the working capital and expenses of the MHTL facilities in the domestic Trinidadian currency, the company said.
Nello Ramkissoon, Finance Director of MHTL said, “We are extremely pleased to have secured this new term facility.
“Several leading banks and asset managers have approached us to issue local debt to serve our operational expenses and we are overwhelmed by the demand and the trust that they have demonstrated in our company and operations.”
He said the level of interest secured by the company is a testament to the strength of MHTL’s reputation in T&T and globally as a leader in the methanol industry.
Acting Chief Executive of MHTL and managing director of Proman Trinidad Claus Cronberger said, “With this inaugural local Trinidadian debt issuance we have further solidified Proman’s position as one of the premier energy companies in T&T with strong local interests.
“MHTL continues to be the core operational asset for the Proman family of companies and we remain focused on delivering world class methanol and fertiliser products from our diversified asset base in the Point Lisas Industrial Estate where we remain a significant employer of local talent with over 1,500 local employees,” Cronberger added.
Managing director of ANSA Merchant Bank Ltd Gregory Hill, described the move as a landmark energy sector transaction which demonstrated the on-going growth and development of its capital markets.
“It afforded MHTL and Proman the opportunity to increase its local content now via the domestic financial and capital markets,” he added.
MHTL is one of the largest methanol producers in the world with a total capacity of over four million metric tons annually and 1.5 million metric tonnes of fertiliser products, from its five methanol plants located at the Point Lisas Industrial Estate.
The company is the largest supplier of methanol to North America and is also a significant supplier to the European Market.
Reporter: Geisha Kowlessar-Alonzo